The risky short bet was made in anticipation of Ethereum’s Pectra upgrade as Ether fell nearly 11% amid growing global trade concerns.
An anonymous cryptocurrency trader has accumulated almost $68 million in unrealized profit by shorting Ether amid its recent price decline.
According to blockchain data from Hypurrscan, the trader opened a 50x leveraged short position when Ether (ETH) was trading at $3,176, on Feb. 1. As of 9:06 am UTC on March 5, the position had almost $68 million in unrealized profit.
Shorting involves “borrowing” the underlying cryptocurrency from a broker, selling it at the current price, and then repurchasing it once the price falls — a strategy used by traders to bet on the price decline of an asset.
Crypto lender Nexo, which manages $11 billion in assets, announces return to the US after regulatory exit in late 2022
Nexo’s return to the American market has become possible thanks to the changes in crypto industry regulations under the Donald Trump administration.
Nexo Is Coming Back to the US – Why It Matters
Nexo co-founder Antoni Trenchev announced the return during an exclusive business event attended by Donald Trump Jr., a vocal supporter of the crypto industry. The gathering underscored the growing political support for digital assets in the US.
“America is back — and so is Nexo. Thanks to the vision and leadership of President Donald J. Trump, his administration, and his family, the United States is once again a place where innovation is championed, not stifled. A place where pioneers are celebrated. Nexo is returning to America — stronger, smarter, and determined to win,” Trenchev said.
Donald Trump Jr. reinforced this sentiment, stating:
“Crypto is the future of finance. We must bring this innovation back to American soil to maintain our economic leadership.”
US users will regain access to all Nexo services, including:
High-yield crypto savings accounts
Asset-backed credit lines
Advanced trading
Institutional-grade liquidity solutions
Over the past week, the network’s native token, NEXO, surged by more than 12%, and the positive sentiment continued today following the news. Its market cap stands at $1.2 billion.
It exited the US in 2022 due to regulatory pressure. The SEC and several states (New York, Kentucky, and Vermont) accused Nexo of offering unregistered securities through its Earn Interest products. The crypto lender later agreed to pay a $45 million fine and discontinued services for US customers.
Now, with a more favorable regulatory climate, Nexo’s return marks a pivotal shift. The platform now aims to reinforce its mission of empowering users to grow and preserve crypto wealth with secure, tailored solutions.
Nexo CEO Antoni Trenchev with Donald Trump Jr. Source: BeInCrypto
Under Trump’s leadership, US regulators appear more open to crypto innovation, potentially paving the way for other exiled platforms to return. Recently, crypto market maker DWF Labs also announced its entry into the US market.
Ethereum has seen an uptick in institutional interest in recent weeks; however, the price is consolidating in a tight range.
On-chain data has revealed that selling pressure from US-based whales and institutions has steadily declined over the past month despite the altcoin’s lackluster price performance.
Ethereum Demand Holds Strong Among US Investors
According to data from CryptoQuant, Ethereum’s Coinbase Premium Index (CPI) has remained consistently above the zero mark over the past month. This is a signal of sustained buying interest from U.S.-based investors.
This metric measures the difference between the ETH’s prices on Coinbase and Binance, and it is a good indicator for tracking US investor sentiment.
When the CPI rises, ETH trades at a premium on Coinbase compared to international exchanges. This reflects stronger buying pressure from US-based investors.
Conversely, when the CPI falls—or worse, turns negative—it signals that demand on Coinbase is lagging behind global markets due to profit-taking or waning interest among US buyers.
Therefore, despite its lackluster price performance in recent weeks, ETH’s steady CPI above the zero line suggests that US investors are continuing to buy rather than exit the market. This points to a measured accumulation trend rather than a sell-off.
Moreover, the consistent weekly inflows into ETH-backed exchange-traded funds (ETFs) confirm the sustained interest from key investors. Per SosoValue, these funds have recorded consistent weekly net inflows since May 9.
Total Ethereum Spot ETF Net Inflow. Source: SosoValue
This reflects a sustained appetite among institutional investors for exposure to ETH, even as its price action remains relatively muted.
ETH Trapped in Tight Range
Readings from the ETH/USD one-day chart confirm that ETH has been consolidating within the $2,750 to $2,424 price range since early May. If institutional investors increase their buying pressure and broader market sentiment improves, the coin could rally toward the $2,750 resistance level and potentially attempt a breakout above it.
If successful, ETH’s price could climb further to around $3,067.
However, if investors’ participation weakens and bearish pressure builds, ETH may fall back toward $2,424. It could decline toward $2,185 if that support fails to hold.
Polkadot’s DOT has witnessed a surge in trading activity over the past few days. Since last weekend, the altcoin has posted modest but consistent gains.
This move has been largely driven by renewed optimism surrounding pending regulatory decisions on DOT-backed exchange-traded funds (ETFs) in the United States. With one of those decisions expected to come on June 11, DOT is seeing a notable rise in demand among market participants.
Polkadot Gathers Steam as ETF Decision Looms
Investor sentiment around DOT has grown increasingly bullish as the US Securities and Exchange Commission (SEC) prepares to issue its final rulings on two major ETF applications this month.
DOT is gaining steam ahead of the June 11 decision, with traders betting on a favorable outcome.
This growing optimism is reflected in DOT’s price action, as it edges closer to its 20-day exponential moving average (EMA), a key indicator that signals a shift in momentum. At press time, DOT trades just below this key level, with mounting bullish pressure suggesting a potential breakout to the upside.
The 20-day EMA measures an asset’s average trading price over the past 20 days, placing greater weight on recent price movements. When an asset’s price breaks above the EMA, it is a bullish signal indicating that buyers are gaining control and a near-term uptrend may be forming.
For DOT, a sustained move above this level could confirm the growing bullish sentiment and trigger further upward momentum.
Additionally, the coin’s funding rate across derivatives exchanges remains positive, suggesting that long-position holders are willing to pay a premium, another sign of growing confidence ahead of tomorrow’s decision. At press time, the metric sits at 0.0093%, per Coinglass.
The funding rate is a periodic fee between long and short traders in perpetual futures markets. It keeps contract prices aligned with the spot market. A positive funding rate indicates that long traders are paying shorts. This suggests bullish market sentiment and a higher demand for long positions.
DOT Rally Gathers Steam, But SEC Ruling Could Be a Game-Changer
DOT trades at $4.11 at press time, recording a 3% price gain over the past day. During that period, its daily trading volume has soared 76% to $230 million, highlighting strong investor demand behind the rally.
When an asset’s price and trading volume rise simultaneously, it shows strong market interest. It also confirms the strength of the price move. This combination suggests that DOT’s uptrend is backed by demand and may have further momentum.
In this scenario, DOT could break the resistance at $4.13 and climb to $4.37.
However, an unfavorable SEC decision tomorrow could shake investor confidence and spark sell-offs. This could drive DOT’s price down toward the $3.96 level.
